Explaining Licensing Deals: BAPE and Anti Social Social Club Tease Their Forthcoming Collaboration

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https://hypebeast.com/2017/4/bape-anti-social-social-club-teaser

John 3 minutes ago

Can you elaborate on what paying for “licenses” in street wear is? By the way your insight on street wear is intriguing. I’ve lurked here long enough to know your post have the most substance most days

Syndicate The Hypebeast Critic a few seconds ago

Okay so a license to get like Marvel or Looney Tunes or some shit is about $20-30k and you can use all their content. I’m going to assume Bape because it’s Bape would charge around $30-500k plus a percentage of whatever he sells. Notice that it’s not Bape or MMJ making the t-shirts, it’s always Neek’s Gildan just with the logo slapped ontop. When I saw that I concluded he’s probably just paying them the licensing fee to use their logo, then slapping it onto his Gildan’s and charging 3x as much. That’s a straight licensing deal. Bape or MMJ could also make the t-shirts for him but ask yourself first why would either of those labels want to collaborate with him in the first place.

Notice he’s not getting his own ASSC Bape Shark or anything fancy, it’s always just a shitty logo slap. MMJ and Bape have incredible facilities, but they never give him access.

1.) MMJ is old as shit and this introduces them to Generation Z and also gets them a major payday. Even if Neek breaks even on the pop-up shops after the licensing deal, he’ll make it back in e-commerce sales due to the hype. Realistically, I think MMJ might have only charged him like $50k for that. Neek pisses that on a car, I wouldn’t put it past him.

2.) Bape can obviously charge more but they’re losing relevance since Nigo left. He could probably pay them like $100K now that MMJ already cosigned him, run the pop-up, probably break even on that after flights, shipping, staff, import taxes etc. Again, it keeps Neek’s hype high and sustains his label.

Neek pretty much is running a marketing company. His brand is sustained off hype and a shitload of collabs, clever almost like Supreme. Unlike Supreme, Neek has no massive factory backend to make complicated garments. That’s why it’s always just Gildans. So if he can’t make quality clothes, all he can pretty much do is collab with every major brand you can think of until he runs out of brands and the hype dies down. Making $10-20M in profit in a few years is no easy feat but sustaining this beyond Bape I have absolutely no idea how hes’ gonna do that. Hey man, even Edison Chen fell down to $50k in his bank account at one point. Anybody can be king then fall off after 5 years.

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